The Value Chain Model

question 54

Multiple Choice

The value chain model:

• A)categorizes five related advantages for adding value to a firm's products or services.
• B)sees the supply chain as the primary activity for adding value.
• C)categorizes four basic strategies a firm can use to enhance its value chain.
• D)highlights specific activities in the business where competitive strategies can best be applied.
• E)enables more effective product differentiation.

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Definitions:

Banking System Reserves

The portion of deposits that banks must hold in reserve and not lend out, often held at the central bank to ensure liquidity.

Money Supply

The sum of financial resources, comprising cash and deposits in banks, accessible in an economy at a particular moment.

Price Level(P)

A measure of the average prices of goods and services in an economy, often used to compare the overall cost of living or inflation rate over time.

Money Demanded

The total amount of money that households and businesses want to hold at a given time, influenced by interest rates, income, and prices.